- Markit
Euro zone's manufacturing PMI came at 52.0 in April, beating expectations for a no change from 51.9 points a month before. Slower pace of development is considered to be disappointing, since it was expected that ECB's QE would bring more pronounced boost and recovery. Meanwhile, the Euro zone's quarterly economic growth at 0.4% underlines the marginal pace of economic recovery. Elsewhere, German manufacturing PMI advanced to 52.1, overshooting expectations of 51.9. Rather slow pace of sector's growth can be explained by weaker production and new orders. Furthermore, new export business expanded at the slower pace, despite a weaker Euro.
Meanwhile, French manufacturing sector's activity dropped to 48.0 points, down from 48.8 in March and also worse than estimated by analysts at 48.4. French manufacturing sector has been in the contraction territory since May of the previous year. Despite falling prices, demand for any kind of products stepped lower, which weakened growth of new businesses and manufacturing industry, in particular. Nevertheless, the IMF forecasts the French economy to add 1.2% this year and 1.5% in 2016. Surprisingly, the third biggest European economy showed a gain in manufacturing activity to 53.8 points, reaching the 12-month high, even though analysts had expected Italy's PMI to come at just 53.4 points.
© Dukascopy Bank SA